A commerce department strategy paper prepared at the behest of Union minister Suresh Prabhu has suggested a slew of measures to check the massive trade deficit with China. The paper has suggested export incentives and says that the ministry needs to vigorously pursue greater market access for agriculture and dairy products and pharmaceuticals.

Its claim was to claw back a $40 million (Rs 352 crore) payout Diageo had made to Mallya in 2016, as part of the $75 million (Rs 661 crore) settlement for his departure from United Spirits (USL), as well as a $135-million loan Diageo had refinanced for Mallya’s company Watson.

The ruling is similar to the one by Karnataka high court where in case of Flemingo Duty Free Shop, it was held that sale or purchase by such stores would be a transaction in the course of export or import.